# Line-level exemptions

Source: https://developer.avalara.com/avatax-dm-combined-erp/sales-tax-badge/designing/line-level-exemptions/

# Line-level exemptions

**Element type: Suggestion**

**Endpoints used:** [LineItemModel](https://developer.avalara.com/api-reference/avatax/rest/v2/models/LineItemModel/)

Your UI should include the ability to identify individual items on a transaction as exempt from tax. Specifically, if your platform supports line-level exemptions, then your integration must also support them. With line-level exemptions, you can sell a mixture of exempt and non-exempt items in a single transaction. AvaTax allows you to specify one of the following exemption methods either an`entityUseCode` or an`exemptNo` in the [line](https://developer.avalara.com/api-reference/avatax/rest/v2/models/LineItemModel/) element in the [CreateTransaction model](https://developer.avalara.com/api-reference/avatax/rest/v2/models/CreateTransactionModel/).

-   `entityUseCode`: The client application customer or usage type. This field allows you to designate a type of usage that may make this transaction considered exempt by reason of exempt usage.
-   `exemptNo`: The exemption number. If you specify an exemption number for a line item, then the line will be considered exempt. You may be asked to provide proof of this exemption certificate in the event that you are asked by an auditor to verify your exemptions.

Here’s an API call that demonstrates using a line-level`entityUseCode` for a sale to a charitable organization. (More information about entity use codes is available in the [Exempt reason matrix for the U.S. and Canada (entity use code list)](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Exempt_reason_matrix_for_the_U.S._and_Canada_entity_use_code_list.html) Knowledge Center article.)

```
{  "lines": [    {      "amount": 100,      "entityUseCode": "E",      "taxCode": "PS081282",      "itemCode": "Y0001",      "description": "Yarn"    }  ],  "type": "SalesInvoice",  "companyCode": "DEFAULT",  "date": "2017-10-02",  "customerCode": "ABC",  "addresses": {    "singleLocation": {      "line1": "2000 Main Street",      "city": "Irvine",      "region": "CA",      "country": "US",      "postalCode": "92614"    }  }}
```

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